Stock Inflow And Outflow Change Rate,The Conversion Speed Effect On Stock Returns

The study of traditional financial theory is based on the "rational economic man" hypothesis of economics research in asset prices,according to this hypothesis,investors in buying and selling stocks they may effectively use information rapidly,all known factors affecting a stock price has been reflected in the price of the stock,so according to this theory,the technical analysis of stocks is invalid.But cash flow as a commonly used technical analysis indicators in the stock market has been widely applied in the stock practice,practice study is comparatively perfect,securities analyst of daily,weekly cash flow,and often in the newspapers and the financial media published money flows and stock market judgment point of view.In the academic field,inflows and outflows how to influence stock returns has been a hot research direction,many scholars of cash flow and the relationship between the stock returns.Among them,most scholars use fund flows as the institutional investors in the capital on the stock market,the fund flows impact on stock returns,and studies the stock cash flow less impact on stock returns,stock cash flow impact on stock returns and the present research is the main use of net capital flows or divided by the shares the day's trading amount of standardizing capital,lack of current capital inflows and outflows compared with the previous studies.So this article by building based on stock funds and flow rate,the conversion speed of regression model,using panel data of Shanghai and shenzhen a-share stocks all the data and the benchmark Shanghai composite index and shenzhen composite index of time series data to the empirical test of the model,the study found that the inflow rate,the rate of change of outflows from have A system of significant impact on stock returns,the inflow rate of stock returns are positively significant effect,the rate of change of capital outflow is A negative significant influence to stock returns,capital inflow than outflow of converting speed is has A significant effect on stock returns,and the effect is positive.From the perspective of empirical proof stock inflows and outflows rate,conversion rate for stock gains significant influence and significance of stock capital expansion of existing literature and the empirical study of relationship between stock returns,enhance its explanatory power on the stock market.Stock market investors and managers can according to the cash flow rate,the conversion speed to explain the change of stock returns,for stock investors investment decision-making and stock market market regulation has important reference significance.